P&G (PG), Teva (TEVA) Partnering in Global OTC Drug Strategy

Procter & Gamble Co. (NYSE:PG) and Teva (NASDAQ:TEVA) announced they have entered a partnership to develop and market over-the-counter drugs outside of North America, including existing brands such as Pepto-Bismol and Vicks.

Cincinnati-based P&G and Jerusalem-based Teva Pharmaceutical Industries Ltd. said they plan to combine their over-the-counter drug businesses outside of North America, building leadership in key markets such as Germany, Russia and Brazil while positioning them for faster growth in emerging markets and with more offerings to aging populations in developed markets.

The deal could also eventually help consumers choose from more medicines without a prescription and at lower prices.

P&G's products include Vicks cold medicines, Pepto-Bismol stomach relief, Metamucil fiber supplement and Prilosec OTC heartburn medicine.

The deal will expand the companies' reach geographically and in retail outlets including drugstores and groceries, said Shlomo Yanai, Teva's CEO and president, in a conference call. It also combines Teva's drug research and development experience and global manufacturing with P&G brand-building, marketing and consumer knowledge.

Teva closed Thursday at $50.35, gaining $1.23, or 2.50 percent. P&G closed at $61.14, up $0.23, or 0.38 percent.




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